TD Cowen analyst Doug Creutz reiterated a Hold rating on Paramount Global Class B (PARA – Research Report) today and set a price target of $14.00.
Doug Creutz has given his Hold rating due to a combination of factors affecting Paramount Global Class B’s performance. The company’s Q4:24 results showed a decline in both revenue and earnings, primarily driven by weaker-than-expected performance in the TV Media segment. The revenue for TV Media fell short of estimates, with advertising and affiliate revenues both declining more than anticipated, indicating a challenging advertising market.
Despite some positive developments, such as an increase in global streaming subscribers and a slight improvement in Paramount+ ARPU, these were not enough to offset the overall underperformance. The Direct-to-Consumer segment showed mixed results, with revenue growth aligning with expectations but ad revenue growth falling short. Given these mixed signals and the need for clarity on new management’s strategic direction, Creutz believes there is limited advantage in holding PARA shares at this time.